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Quantitative Easing Inappropriately Expands the Fed's Reach

Giving the Fed more power as an economic fix is like hiring an arsonist as a firefighter

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I think it's important to note that the FED has intentionally suppressed velocity by paying interest on reserves (its new tool of monetary policy). The intention, therefore, doesn't seem to be aimed at satiating the elevated demand for money, but rather to pump liquidity into equity markets and elevate asset prices.

Emil of NY 3:10AM July 24, 2012

On the subject of wage stickiness, I offer the following:

http://crankyprofj.blogspot.com/

J of MN 4:42PM July 20, 2012

Also, Horowitz seems to not understand the size of the popped bubble that the Greenspan Fed allowed to grow. 8 trillion dollars. No wonder tripling the Fed's balance sheet is inadequate, as was the stimulus that the Obama team chose.

David of TX 1:52PM July 20, 2012

In a world in which standard banking practices have been re-engineered by the (bloated) financial services industry in order to avoid reasonable regulation, the role of the Fed must be re-engineered in order to deal with the consequences. The arsonist here is the bloated financial services industry, not the Fed.

David of TX 1:40PM July 20, 2012

Horwitz should take a look at this graph from George Selgin:

http://www.freebanking.org/wp-content/uploads/2012/07/fredgraph3.png

I think it shows pretty clearly that wage stickiness is still holding us back, even after four years.

Peter of 1:28PM July 20, 2012

This 60 year wave of Americanizing the World is moving to fast or is going to make war doing it !

Witch look at were the money has been going .Bringing Immigration is all so bringing Terrorism because every one will fight for Religion and it will bankrupt America . Israel has been fighting and the whole Middle east for 2000 years look were it got them . Now America is Immigrating Religions Not Wealth ! Now we soon will have murder and corruption going Wild in America ! to mush to Fast some thing is going to Break !

Scott E Downer of NH 12:18PM July 20, 2012